The Board of Directors of The Gabelli Multimedia Trust Inc. (NYSE:GGT) declared a
$0.13 per share cash distribution payable on June 26, 2006 to common stock shareholders of
record on June 16, 2006, pursuant to the Gabelli Multimedia Trust's 5% Distribution
Under the Gabelli Multimedia Trust's distribution policy, the Fund pays a minimum
annual distribution of 5% of the average net asset value of the Fund. The Fund's current
quarterly distribution level for 2006 was increased to $0.13 per share in each of the first
three quarters of the year with an adjusting distribution in the fourth quarter of an amount
sufficient to pay 5% of the average net asset value of the Fund, as of the last day of the
four preceding calendar quarters, or to satisfy the minimum distribution requirements of the
Internal Revenue Code, whichever is greater. Each quarter, the Board of Directors reviews
the amount of any potential distribution based on the income, capital gains or capital
A portion of the distribution may be treated as long-term capital gain and qualified dividend
income for individuals, each subject to the maximum Federal income tax rate, which is currently
15% in taxable accounts for individuals. If the Fund does not generate earnings from dividends,
interest and net realized capital gains equal to or in excess of the aggregate distributions
paid by the Fund for the year, then the amount distributed in excess of the Fund's investment
income and net realized capital gains will be deemed a non-taxable return of capital.
Long-term capital gains, qualified dividend income, ordinary income and paid-in capital, if
any, will be allocated on a pro-rata basis to all distributions to common shareholders for
the year. As of May 17, 2006, the date of this press release, the current distribution would
include approximately 12% from net investment income, 75% from net capital gains and 13% from
paid-in capital. The estimated components of each distribution are provided to shareholders
of record in a notice accompanying the distribution and are available on our website
(www.gabelli.com). The final determination of the sources
of all distributions in 2006 will be made after year-end. All shareholders with taxable accounts
will receive written notification regarding the components and tax treatment for all 2006
distributions in early 2007 via Form 1099-DIV.
The Gabelli Multimedia Trust Inc. is a non-diversified, closed-end management investment
company with $224 million in total assets whose primary investment objective is long-term growth
of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.
(NYSE:GBL), which is a publicly traded NYSE listed company.